Yahoo Finance Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know
Palo Alto Networks (PANW) closed at $193.57 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the security software maker had gained 2.81% in the past month. In that same time, the Computer and Technology sector gained 7.94%, while the S&P 500 gained 1.72%.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. The company is expected to report EPS of $0.92, up 53.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, up 23.65% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $6.89 billion. These results would represent year-over-year changes of +59.13% and +25.18%, respectively.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.67% higher within the past month. Palo Alto Networks is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 47.94 right now. This represents a premium compared to its industry's average Forward P/E of 30.17.
It is also worth noting that PANW currently has a PEG ratio of 1.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security was holding an average PEG ratio of 2.38 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
